The Q2 2008 statistics show substantial year on year increases in critical problems across all sectors, but construction (up 370 per cent on Q2 2007) and IT (up 371 per cent) showed the largest percentage

Overall, 4,258 companies faced ‘critical’ problems (those with CCJs totalling over £5,000 or Winding-Up Petition related actions) in the first quarter of 2008 compared with 542 as in the same period last year.  The research also showed conditions getting more difficult as the year progresses, with an increase in the number of companies facing critical problems of nearly 30 per cent in Q2 2008 compared to Q1 2008.

Begbies chairman Ric Traynor said: “Credit lines have dried up and companies which might have been supported by extended credit up to a year ago are now at real risk.”